Aviva Investors has launched a multi-sector fund for investors who want to spread their risk across the firm’s Return Enhancing and Liability Matching (REaLM) portfolio.
The portfolio contains five specialist, unregulated funds that invest in social housing, ground rents, infrastructure, student and commercial assets. They are suitable for pension schemes because the funds have the potential to deliver long-term, inflation-linked returns.
Julian Taylor, Head of REaLM at Aviva Investors, says UK pension schemes have invested £725 million (€900 million) in the funds since the strategy was launched last year.
“Through a single vehicle, investors now have the opportunity to diversify their holdings across our different REaLM funds, an attractive proposition particularly to smaller pension schemes, which may not have the capacity to separately invest in the different sectors,” he says.
The multi-sector fund will invest in three or more of the five funds, with no more than 40% of its holdings in each. The manager is Julian Taylor, who also looks after the commercial assets and student funds.
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